ATC to transform Vodafone Thought OCDs value ₹1,440 crore into fairness

Vodafone Thought Ltd (VIL) knowledgeable the exchanges that American Tower Corp (ATC) has requested VIL for conversion of 14,400 OCDs amounting to ₹1,440 crore into 144 crore absolutely paid-up fairness shares of face worth of ₹10 every. “VIL will take needed actions to allot the fairness shares to ATC pursuant to the conversion of the stated OCDs, as per the phrases of the OCDs,” Vi stated in its change submitting. 

VIL had issued Optionally Convertible Debentures (OCDs) amounting to ₹1,600 crore to ATC Telecom Infrastructure Non-public Ltd in February 2023. That is along with the truth that Vi has prolonged the time period of redemption on its first tranche of OCDs (value ₹800 crore) by 12 months in August 2023.

• Additionally learn: Vodafone Thought CEO provides no recent timeline for fundraise

The OCDs had been essentiallyissued on the debt accrued by Vi to ATC, when it was not in a position to make its vendor funds to the agency. Vi was the biggest buyer for ATC and has been unable to make its funds for a number of months attributable to liquidity points. Vi’s whole debt to ATC quantities to ₹3,600 crore. 

Whereas Brookfield has acquired the India unit of ATC in an all-cash deal of $2.5 billion, which is anticipated to shut within the second half of 2024, ATC will retain the complete financial good thing about the OCDs issued by Vi as per the settlement. 

• Additionally learn: Vodafone Thought’s loss moderates in Q3FY24

Fundraise plans

Moreover, Vi additionally knowledgeable the exchanges on Tuesday that its executives will meet with institutional buyers in Singapore on Wednesday of their bid to lift funds for the cash-strapped agency. Related conferences are lined up in Mumbai on Thursday and Friday. 

Final month, Vi’s board had accredited a ₹45,000-crore fundraising plan, by each fairness and debt. This included a ₹20,000-crore equity-based fund increase from present buyers.